Jersey For Islamic Finance

Published date08 March 2023
Subject MatterFinance and Banking, Corporate/Commercial Law, Financial Services, Fund Management/ REITs, Corporate and Company Law, Trusts
Law FirmJersey Finance Limited
AuthorJersey Finance

Jersey is proud to provide global investors with advice and support for their Shari'a-compliant investments and structures. Shari'a-compliant products and structures are regulated and administered on the same basis as conventional products and structures. Providing for true parity under the law.

Investors can take advantage of Jersey's flexible legal system, robust regulatory regime and tax neutral environment to realise their global investment ambitions, including for Shari'a-compliant investments.

Jersey structures and services are routinely used for:

  1. Shari'a-compliant asset administration and fund domiciliation;
  2. Capital market products, such as Sukuk issuances; and
  3. Shari'a-compliant private wealth management and administration.
Shari'a-compliant asset management and structured products domiciliation

Jersey's funds sector is a leader in Shari'a-compliant asset management. The jurisdiction is a preferred domicile for developed asset classes, such as real estate, private equity, commodity, and equity, for Shari'a-compliant fund mandates. Funds in Jersey are regulated depending on the type of investors they have and whether they are closed or open-ended funds. Sophisticated or institutional investors are subject to a lighter touch regulatory framework, provided that the offer document clearly outlines the risks involved in the fund.

Establishing Shari'a-compliant fund-like structures

Establishing a Shari'a-compliant fund-like structure in Jersey is a very flexible process and can be done using any of the legal structures available for the establishment of investment funds, including a limited company, protected/ incorporated cell company, unit trust, or limited partnership. All funds in Jersey, including Shariah-compliant funds, are taxed at 0%.

Shari'a Supervisory Board (SSB)

The necessity to appoint a Shari'a Supervisory Board (SSB) to provide guidance regarding Shari'a considerations and compliance is a process which Jersey is highly experienced in. Several Shari'a-compliant funds have been established in Jersey, from set up and administration to audit. Jersey's local professionals are experienced in the specific requirements of the SSB, including the preparations leading up to issue of the fatwa and the requirement for ongoing advice on the monitoring of the Shariah-compliance of the structure. In Jersey, there are legal, administrative, and accounting experts who understand and embrace the role of the SSB and can tailor the structuring of a...

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